FxWirePro: USDCAD forms hammer pattern, good to buy on dips

Chart pattern-Hammer

Ichimoku Analysis (Daily chart)

Tenken-Sen- 1.40197

Kijun-Sen- 1.40577

USDCAD has recovered slightly after hitting a low of 1.38660. The pair has formed a double bottom around 1.38500 and major weakness only below that level. WTI crude oil is holding above $32 after the API report shows an inventory draw of 4.8 million vs. a forecast of the build of 1.15 million barrels.

Markets eye Canada CPI for further direction. Technically, significant support stands at 1.3850, and any violation below targets 1.3800/1.3760. The near term resistance is at 1.3960, an indicative break above will take the pair to next level till 1.4000/1.4060.

It is good to buy on dips around 1.3885 with SL around 1.3845 for the TP of 1.4000.